Giles: We Foresee Significant Growth in Remittances
In this interview, Senior Banking Advisor, Retail Banking at Access Bank Plc, Robert Giles, spoke extensively on the anticipated growth in remittances and the transformative impact this will have on Nigeria’s economy. He also spoke on the bank’s innovative strategies for advancing financial inclusion and digital banking, while addressing key developments in the nation’s digital financial landscape. Nume Ekeghe presents excepts:
What role has digital innovation played in Access Bank’s retail banking strategy, and how has it impacted customer engagement?
Digital innovation is at the heart of everything we do as a bank. With over 60 million customers, our journey over the past 15 to 20 years reflects a significant transformation. In the early days, customers would visit a branch, fill out paper forms, and officially become part of the bank. This was the foundation of financial inclusion, which initially focused on corporates and businesses before expanding through the rapid proliferation of branch-based banking to include the wider population.
However, achieving 60 million customers with a paper-based system would have been impossible, or at least very inefficient, we would have needed tens of thousands of branches nationwide. This is where digital innovation came in. Pioneering one of the first mobile apps in the country and introducing USSD banking laid the foundation for our truly digital-first strategy.
Today, most customers find us online. They come across us on news platforms, entertainment sites, and social media channels like Instagram, Facebook, and X where they can find out more about what we do and interact with us. From there, they can easily open an account from the comfort of their home, workplace, or anywhere else—simply by dialing #901. It’s that simple. The same applies to our mobile app where you can find out about us online, download the app and open an account and begin a relationship. The days when banks had to urge customers to explore digital channels as an alternative to branch banking are long behind us.
Now, digital is no longer an alternate channel, it is the primary one. Branches have become the alternative. Today, more than 90 per cent of transactions occur outside the branch, predominantly on phones—whether feature phones or smartphones. This shift has revolutionized banking from the moment customers discover us to account opening to ongoing services, whether transactional or extending to non-traditional banking products. Digital has redefined customer engagement and continues to shape the future of financial services.
What are the strategies put in place to increase the adoption of digital channels by retail customers and how does it enhance financial inclusion?
Financial inclusion is central to our mission and a cornerstone of Nigeria’s broader economic objectives, as championed by the Bankers’ Committee and the Central Bank of Nigeria (CBN). Historically, Nigeria struggled with financial inclusion, ranking amongst the lowest on the continent. However, we have made remarkable progress in closing that gap through the co-ordinated leadership of the Central Bank of Nigeria and the Bankers Committee. According to the Enhancing Financial Innovation and Access (EFInA) reports, which show financial inclusion rates growing from less than 50% in 2008 to 74 per cent in 2023, Nigeria is now amongst the better-ranked countries for financial inclusion, largely driven by innovations in mobile financial services. This is also a continental phenomenon, with account ownership in Sub Saharan Africa more than doubling since 2011.
This progress has been achieved through collaboration between banks and fintech’s’, leveraging tools such as USSD technology, mobile banking applications, and agency banking to reach underserved communities. The traditional branch-based banking model, while transformative in its time, is no longer sufficient to meet the needs of modern customers. For someone working in a company, government, or as a trader or small business owner, the time required to visit a branch to open an account or complete transactions is time lost from productive activities or family. Today, customers demand convenience, and digital innovation allows us to meet them where they are.
Our network of over 600,000 AccessClosa agents ensures that customers are never far from financial services. While digital tools are critical, personal interaction remains essential for financial inclusion.
Our agent network plays a crucial role in bridging this gap. Beyond accessibility, digital tools have significantly reduced the cost of serving customers. Consider the transportation costs and lost time involved in traveling to a branch—time that could be spent trading, working, or attending to other priorities. By bringing services directly to customers through mobile and digital channels, we have transformed the banking experience, ensuring customers are served where and how they prefer, rather than requiring them to adapt to our systems. This approach underscores our commitment to reshaping financial services to genuinely meet customer needs.
How has the bank’s digital transformation journey addressed pain points in the retail banking customer experience?
One of the key points we frequently emphasise in our team planning sessions is that customers don’t necessarily want to bank or make payments in the traditional sense; what they truly want is to keep their money secure, travel, work, eat, shop, and manage their lives with ease. When they engage with financial services, we must focus on understanding what they are trying to achieve, not just the transactions they need to complete. For example, services like embedded finance or buy-now-pay-later options are great ways to align financial products with everyday needs without thinking about the financial product as an extra step. Instead of going to a branch to apply for a personal loan, a customer can now make an online purchase and pay for it in installments. This approach brings us closer to the customer, providing financial solutions that are seamlessly integrated into their lives.
Another critical area we’ve worked on is simplifying the Know Your Customer (KYC) process and reducing the documentation required to open an account. The banking sector in Nigeria has made significant strides in this regard, with the introduction of tiered KYC, allowing individuals to open basic accounts remotely by simply creating a digital wallet. This development has played a pivotal role in advancing financial inclusion.
Regarding transactions, we’ve enhanced the customer experience by offering greater flexibility and accessibility. Customers now have multiple ways to pay through cards, mobile access, or peer-to-peer transfers. For example, with our Access More platform, you can make QR payments, order a new debit card, or even request a statement—all instantly. If you need a stamped statement for visa purposes or a loan, there’s no need to visit the branch. We already have your transaction history, turnover, and salary information, allowing us to pre-qualify you for a loan. With just a few clicks on the app, the loan can be in your account within seconds.
By removing these pain points and shifting many traditional banking processes from the branch to the digital space, we are not just offering convenience but also ensuring that services are fast, accessible, and available at the customer’s fingertips. This is the future of banking—focused on understanding customer needs, simplifying processes, and providing instant, on-demand services through technology.
Can we know some of the digital payment solutions you have and how they have helped retail business growth?
Digital payments are a critical driver of economic activity; they are the lifeblood of business success. Without the ability to process payments efficiently, businesses face significant challenges. At Access Bank, we understand this dynamic, which is why, after transitioning into a financial holding company a few years ago, we diversified into multiple verticals, including banking, payments, lending, insurance, and pensions.
One of our strategic partnerships has been with Hydrogen, enabling us to better serve merchants nationwide. Hydrogen’s innovative Instant Payment Links allow customers to make payments via links or codes, receiving instant confirmation and value at the point of sale, further enhancing the merchant experience. You’ll likely have seen Hydrogen’s branding on POS terminals, reflecting the success of this collaboration.
In Nigeria, most transactions still occur on a person-to-person basis, often seen as individual payments. Through data and analytics, we’ve identified that a significant number of customers, around 7.5 million, are small business owners. We now have the capability to serve these individuals more effectively, providing them not only with financial products but also with non-financial services through our SME team. This includes business seminars on topics like setting up and managing a business, keeping personal and business finances separate, and best practices for growing a company.
Payments are now more accessible than ever. Beyond traditional methods, customers can make payments via USSD, mobile apps, or even interact with our chatbot, Tamada, on the banking app. To simplify transactions, we’re pioneering payments through phone numbers, allowing customers who prefer not to remember their account number to simply use a phone number to send payments. This approach is a testament to how digital solutions transform people’s engagement with financial services, making transactions faster, more convenient, and more inclusive.
Can you give us some insight into some specific products by the bank, especially women, SMEs and youths?
At Access Bank, women are at the heart of everything we do and I’m extremely fortunate that the majority of the leaders in my team are women. Our W Banking initiative has evolved into a thriving community, going beyond just offering financial products to creating a comprehensive ecosystem that supports women in multiple dimensions of their lives. Access W is not just a Nigeria-focused solution; it’s a pan-African proposition, with Access Bank’s presence in numerous countries across the continent. We have recently launched Access W in Botswana, and our mission is to impact women across Africa, not just locally in Nigeria. Our aim is to foster intra-African trade and connect women across the continent with global markets.
One of the key offerings under Access W is the W Power loan, which has been in place for over a decade, providing women with preferential rates and terms to fund their businesses. Additionally, our digital lending team provides instant loans accessible via mobile devices, ensuring that women, regardless of the size of their business, can access financing quickly and conveniently.
The W-branded debit card helps identify and serve women within our community, and we organize a range of seminars and events tailored to support women in business. We also have partnerships designed to help women learn practical skills, such as driving, and access loans for purchasing their first cars. Our training programs empower women with the tools they need to grow and succeed in their businesses. Just this week, we held our 6th annual Womenpreneur ‘Pitch a Ton’ event where we celebrated over 100 graduates of the mini MBA programme we run in conjunction with the IFC for women-led small and medium businesses. These businesses are all doing amazing things on the continent, solving problems, creating employment and wealth.
At Access Bank, we understand that empowering women leads to broader societal benefits. When we support women, we uplift families and contribute to the overall economic growth. This commitment to women’s economic empowerment is central to our values, and we continue to invest heavily in W Banking.
Our youth solutions are also tailored to different life stages. For younger children, we offer Access Solo, an account that transitions from a parent-operated to a child-operated account once they turn 18. This progressive approach ensures that as children grow, they become more financially literate and prepared to manage their own finances. By the time they reach adulthood, they have their own debit cards, mobile apps, and full control over their accounts, empowering them to take charge of their financial future.
How do you collaborate with fintechs companies?
Some bankers view fintech companies primarily as competitors, but the potential for collaboration far outweighs the competitive angle. Despite the increasing digitalization of the financial sector, most transactions in the market are still conducted in cash, presenting a significant opportunity for partnership. Fintechs, working with banks as part of the overall financial ecosystem, have helped to bridge the financial inclusion divide and increase the velocity of money in the economy.
To tap into this potential, we established a dedicated team—the Partnership and Digital Capabilities Team. Their primary role is to forge strategic partnerships with fintech companies, helping them gain better market access. This includes collaborating to provide payment services such as instant payments, leveraging partnerships like the one with Hydrogen to facilitate quick transactions, and even supporting fintechs in issuing payment cards. This approach is central to our strategy and has been a key focus for several years.
We are moving beyond the traditional banking partnerships focused on payments, lending, and deposits. We have expanded into more strategic collaborations, such as our partnership with Coronation, which allows our customers to access the stock market and invest in Nigerian equities in real-time via our mobile app.
This innovation lowers the barriers to entry for investing, allowing customers to easily view the market and make real-time transactions directly from their mobile phones. This is a part of our broader financial inclusion strategy to provide customers with access to a wider range of financial services beyond traditional deposit products, enabling them to build long-term wealth and contribute to economic growth in the community.
What upcoming digital innovations or initiatives will further drive retail business growth?
We foresee significant growth in the remittance space, with Nigeria receiving over $20 billion annually in remittances. Digital solutions are driving down the cost of international money transfers, enhancing speed and efficiency. Our partnerships with fintechs and international remittance operators aim to expand financial access, ensuring that more funds flow into the formal economy.
What is Access Bank doing in this regard?
With presence in over 15 countries, Access Bank is building its proprietary payment route, Access Africa, which connects all our countries of presence facilitating individual and business payments on the continent. We also collaborate with global payment schemes like Visa and Mastercard to facilitate seamless international transfers to over 150 countries in the world. By partnering with fintechs, we broaden access to financial services enabling remittances into mobile wallets, making money transfers more affordable and efficient
The reduction in remittance costs will not only benefit the economy but also increase the flow of funds through formal channels. This will drive economic growth and prosperity within the continent.
What is the future of remittances, and how is Access Bank preparing for it?
We anticipate that remittances will evolve beyond cash transfers to include goods and services. For example, remittances could directly fund education fees, support online food retailers, or pay for medical expenses. This approach ensures that remittances are used for their intended purpose while helping to grow commerce and lower costs.
